By Canadian Press

CN Rail reports lower first quarter profit as winter weather bites into bottom line

Apr 23, 2018 | 2:56 PM

Canadian National Railway Co. is cutting its 2018 financial outlook as it reports lower first-quarter income and revenue due to severe winter weather and lower network “resiliency.”

The company says it now expects to post 2018 adjusted diluted earnings per share of $5.10 to $5.25, down from its previous target of $5.25 to $5.40. Last year’s number was $4.99.

CN Rail reported first-quarter net income fell by 16 per cent from the same period last year to $741 million and earnings per share slipped by 14 per cent to $1.00.

Revenue for the first quarter was $3.194 billion, down $12 million, as carloadings increased by three per cent and the operating ratio, a measure of efficiency where a lower number is better, rose six points to 67.8 per cent.

The results were in line with analyst expectations as reported by Thomson Reuters.

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Last week, rival Canadian Pacific Railway Ltd. also blamed winter weather in part for lower earnings of $348 million in the first three months of the year, down from $431 million a year ago, despite a four per cent increase in revenue to $1.66 billion.

Companies in this story: (TSX:CNR, TSX:CPR)

The Canadian Press